{"id":16533,"date":"2017-10-17T12:43:59","date_gmt":"2017-10-17T16:43:59","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=16533"},"modified":"2017-10-17T13:17:52","modified_gmt":"2017-10-17T17:17:52","slug":"rick-perrys-coal-bailout-is-an-attack-on-competitive-energy-markets-with-customers-footing-the-bill","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2017\/10\/17\/rick-perrys-coal-bailout-is-an-attack-on-competitive-energy-markets-with-customers-footing-the-bill\/","title":{"rendered":"Rick Perry\u2019s coal bailout is an attack on competitive energy markets, with customers footing the bill"},"content":{"rendered":"

\"\"<\/a>Secretary of Energy Rick Perry \u2013 whose agenda as governor of Texas was squarely focused on states\u2019 rights and free markets \u2013 is now pushing for a federal plan that could disrupt organized electric markets.<\/p>\n

Perry\u2019s proposal<\/a>\u00a0to the Federal Energy Regulatory Commission (FERC) aims to prop up uneconomic coal at the expense of Americans\u2019 health and wallets.<\/p>\n

Perry\u2019s proposal would effectively pay owners of coal and nuclear power plants their operating costs, plus a guaranteed profit, regardless of whether those plants are selling electricity at a competitive price. These aging plants are currently being driven out of the competitive market by flattened energy demand and a growing list of cheaper, cleaner, more efficient alternatives \u2013 from natural gas and renewables to demand response and grid-scale battery systems. Simply put, Perry\u2019s proposal shields uneconomic coal power, replacing competitive markets with profit guarantees.<\/p>\n

That\u2019s not a thumb on the scale supporting obsolete and expensive energy; it\u2019s an elephant.<\/p>\n

Because carbon pollution from coal plants causes asthma attacks, heart attacks, and a staggering<\/a> number of premature deaths every year, propping up this dirty energy source will not only raise<\/a> electricity bills, it will hurt American families.<\/p>\n

[Tweet “Rick Perry\u2019s coal bailout attacks competitive energy markets, while customers foot the bill.”]<\/p>\n

Undercutting markets, stifling innovation<\/strong><\/p>\n

Perry\u2019s plan promises more than just a subsidy: It\u2019s a legally guaranteed, multi-billion dollar profit margin for coal owners, paid for by millions of families and businesses nationwide.<\/p>\n

What Perry\u2019s proposing is a complete abandonment of the market principles we were led to believe this administration supports. In fact, just last week, Environmental Protection Agency head Scott Pruitt himself proclaimed<\/a> that “regulatory power should not be used by any regulatory body to pick winners and losers.”<\/p>\n

Moreover, federal law clearly prohibits FERC from favoring energy resources for political reasons.

Federal law clearly prohibits FERC from favoring energy resources for political reasons.<\/p>\n<\/div><\/p>\n

The plan is also a death sentence for innovation, applying discriminatorily (in fact, only<\/em>) to the competitive, regional energy markets where cost-effective wind, solar and other clean energy solutions are now flourishing. It\u2019s no wonder virtually every stakeholder is lining up against<\/a> the proposal. It\u2019s rare to see oil and gas producers align with wind and solar developers, consumer advocates and environmental groups. But that\u2019s exactly what\u2019s happening.<\/p>\n

Billions of dollars have been invested in renewables and energy efficiency, responsive and efficient natural gas, and smart energy management solutions in almost every state across the nation, based on thoughtful, rigorous stakeholders\u2019 processes and the expectation that they will fairly compete in an open marketplace. Abandoning that premise poses a direct threat to one of the most dynamic, promising sectors of the economy.<\/p>\n

Fake solutions for real problems<\/strong><\/p>\n

Recently, the National Academy of Sciences issued a comprehensive energy resiliency report<\/a> that says nothing about rescuing inefficient, uncompetitive coal and nuclear units.\u00a0Rather, it looks to the future, suggesting refinements to strengthen and improve market competition (including by strengthening alignment between wholesale gas and electric markets). The author of Perry\u2019s own grid reliability \u201cstudy\u201d said much the same<\/a> earlier this month.

Embracing the truth \u2013 rather than drawing at straws to save a dying industry \u2013 would be a boon for our health and our economy.<\/p>\n<\/div><\/p>\n

Perry claims his plan will improve resilience and reliability. But experience proves that new energy competitors are holding up just fine \u2013 whether it\u2019s Texas wind generators weathering a hurricane<\/a> or California\u2019s solar system surviving a massive eclipse<\/a>. When major disruptions do occur within our heavily-matrixed electricity system, power generation is almost never the problem. Instead, it\u2019s distribution failure, as we see today with the extreme devastation in Puerto Rico.<\/p>\n

By attempting to cook the books in favor of Trump\u2019s broader pro-coal agenda, Perry ignores extensive research<\/a> \u2013 including his own DOE study<\/a> \u2013 that shows the transition to cleaner energy is making America\u2019s electricity system more affordable, resilient, and reliable. Embracing the truth \u2013 rather than drawing at straws to save a dying industry \u2013 would be a boon for our health and our economy nationwide.<\/p>\n","protected":false},"excerpt":{"rendered":"

Secretary of Energy Rick Perry \u2013 whose agenda as governor of Texas was squarely focused on states\u2019 rights and free markets \u2013 is now pushing for a federal plan that could disrupt organized electric markets. Perry\u2019s proposal\u00a0to the Federal Energy Regulatory Commission (FERC) aims to prop up uneconomic coal at the expense of Americans\u2019 health …<\/p>\n","protected":false},"author":39943,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996,4127,27598,84830],"tags":[],"coauthors":[],"class_list":["post-16533","post","type-post","status-publish","format-standard","hentry","category-smart-power","category-dynamic-pricing","category-energy-innovation-series","category-grid-modernization"],"acf":[],"yoast_head":"\nRick Perry\u2019s coal bailout is an attack on competitive energy markets, with customers footing the bill - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2017\/10\/17\/rick-perrys-coal-bailout-is-an-attack-on-competitive-energy-markets-with-customers-footing-the-bill\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rick Perry\u2019s coal bailout is an attack on competitive energy markets, with customers footing the bill - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Secretary of Energy Rick Perry \u2013 whose agenda as governor of Texas was squarely focused on states\u2019 rights and free markets \u2013 is now pushing for a federal plan that could disrupt organized electric markets. 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